The burgeoning demand for used luxury cars and the increasing shift of buyers toward organized dealers will drive the Indian used car market at a healthy CAGR of 14.8% during the forecast period (2021–2030). The market was valued at $18.3 billion in 2020 and it is projected to generate $70.8 billion revenue by 2030. At present, India is witnessing a low penetration of luxury cars. To accelerate the adoption of these vehicles, leading luxury car manufacturers and used car dealers are expanding their operations in the country.
The sector segment of the Indian used car market is divided into organized and unorganized. Under this segment, the organized sector is expected to demonstrate the faster growth during the forecast period. This will be due to the higher propensity of customers to purchase certified vehicles from established dealers. Moreover, the surging shift toward online portals of sellers and buyers in the country will also augment the growth of the organized sector in the future.
Large, medium, and small-sized used cars offered by Cars 24 Services Pvt. Ltd., Mahindra & Mahindra Ltd., Big Boy Toyz Pvt. Ltd., Ford Motor Company, CarDekho.com, Tata Motors Ltd., Droom Technologies Pvt. Ltd., Truebil, Quikr India Private Ltd., Honda Motor Co. Ltd., OLX Group, and Maruti Suzuki India Ltd. can be availed through offline and online stores. In the coming years, large-sized used cars will be adopted in the highest number due to the expanding purchasing power of customers and increasing availability of good quality and less driven second-hand sports utility vehicles (SUVs).
According to P&S Intelligence, Maharashtra accounted for the largest share in the Indian used car market in 2020, due to the swift urbanization, high depreciation value of luxury vehicles, presence of favorable business environment, strong growth opportunities and rapid surge in the state’s young population. Additionally, the soaring disposable income of customers and increasing internet penetration are also augmenting the demand for used cars in the state. Moreover, the easy availability and lower prices of used cars also contribute toward the expansion of the market in the state.
Therefore, the soaring demand for luxury cars and the accelerating digitalization rate will fuel the adoption of used cars in India in the forthcoming years.